Agency
A principal broker who allows a salesperson to operate independently without adequate supervision may be liable for:
ANothing, because the salesperson is an independent contractor
BVicarious liability for the salesperson's unauthorized acts if proper supervision was not provided✓ Correct
COnly a fine from AREC
DCriminal charges for the salesperson's acts
Explanation
A principal broker has a legal duty to supervise affiliated licensees. Failure to adequately supervise can result in the broker being held vicariously liable for harm caused by the salesperson's conduct under their supervision.
People Also Study
Related Arkansas Questions
- A salesperson in Arkansas wishes to operate independently without being affiliated with a broker. Under Arkansas law, this is:Arkansas License Law
- A real estate broker may be held vicariously liable for a salesperson's fair housing violation if:Fair Housing
- An agent who signs a document on behalf of their principal without authority is liable as:Agency
- Which type of co-ownership has NO right of survivorship and allows each owner to sell their share independently?Property Ownership
- Under Arkansas license law, a salesperson who acts without a principal broker is guilty of:Arkansas License Law
- A taking without just compensation, caused by a regulation that deprives an owner of all economically beneficial use of their property, is known as:Land Use & Zoning
- A property owner who allows someone to use their land without objection for years may lose the right to stop that use through:Property Ownership
- Which of the following is NOT a fiduciary duty owed by an agent to their client?Agency
Key Terms to Know
Adjustable-Rate Mortgage (ARM)
A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
State-Specific Concepts
AREC Regulation
Study This Topic
Practice More Arkansas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Arkansas Quiz →